ASSIGNMENT

SESSION SEPTEMBER 2023

PROGRAM BACHELOR OF COMMERCE (B COM)
SEMESTER III
COURSE CODE & NAME DCM2103 - Cost Accounting
CREDITS 4
NUMBER OF ASSIGNMENTS & 02
MARKS 30 Marks each
Note:

 There will be two sets of assignments for every course, and you must answer all
questions in both sets. Average of both assignments’ marks scored by you will be
considered as Internal Assessment Marks.
 Answers for 10 marks questions should be approximately of 400-500 words.

Q.No Set – 1 Marks Total

Questions Marks
1. a. Discuss the classification of cost on the basis of behaviour. 5+5 10
b. Explain the causes of labour turnover.
2. The following information is in respect of Material. 2*5 10
Re-order quantity = 6000 units
Re-order period = 8 – 12 weeks
Maximum Consumption = 1600 units per week
Normal consumption = 1200 units per week
Minimum consumption = 1000 units per week
Emergency Re- order period = 4weeks
Calculate: (a). Re-order level (b) Minimum Level (c) Maximum Level (d)
Average stock level (e) Danger Level
3. a. Discuss the various sources from where information of overheads can be 5+5 10
collected ?
b. Explain the meaning & features of batch costing.
Q.No Set – 2 Marks Total
Questions Marks
1. M Ltd. produced and sold are 5000 units @ ₹ 50 per unit. From given 10 10
data prepare cost sheet with per unit.
Particulars Amount Particulars Amount
Direct Material 100000 Office Rent 6000
Direct Wages 25000 Direct Expenses 10000

Office Stationery 1000 Wages Of Foremen 8000

Telephone Charges 250 Director’s Fees 2600
Advertising 3500 Depreciation-Factory 4000
Factory Rent 17000 Carriage Outwards 750
Factory Lighting 3000 Salesmen's Salary 2500
Depreciation-Office 2400 Oil & water 1000

2. a. Explain the advantages of cost accounting. 4+6 10

b. Q Ltd. produces a product involving 2 distinct processes of manufacture.
The identical units are introduced in process A and the entire output is
transferred to process B.
From the following particulars prepare the relevant process accounts.

Particulars ₹
Materials
Process A (10560 units 395925
introduced)
Process B 83415
Direct Labour
Process A 94500
Process B 198000
There was no opening or closing stock in process A and process B. Works
overheads are absorbed @ 40% of Direct labour in all processes. There were
no spoiled units in any process.
3. a. Explain operating costing its features. 5+5 10
b. Explain any 5 reasons for differences in profit as per costing records
and financial records